Indian tyre maker MRF's quarterly profit slips on higher rubber prices

MRF

12/08/2025 08:20

Aug 12 (Reuters) - Indian tyre maker MRF MRF.NS reported a nearly 14% drop in first-quarter profit on Tuesday, pressured by higher rubber costs.

Company's net profit fell to 4.84 billion rupees ($55.24 million) for the quarter ended June 30, compared with 5.63 billion rupees last year.

Revenue from operations rose 6.8% to 75.6 billion rupees, while total expenses increased 9.8%, driven largely by a 6.4% rise in the cost of materials consumed, which accounts for more than half of overall expenses.

Shares of MRF dropped 3.5% following the earnings announcement.

For further earnings highlights, click (Full Story)

KEY CONTEXT

Tyre manufacturers such as MRF, which supplies to automakers including Hyundai Motor India HYUN.NS and Bajaj Auto BAJA.NS, rely heavily on vehicle sales for a significant portion of their revenue.

Total vehicle sales in the country slipped 5.1% in the reported quarter, compared with a 16.4% growth in the year-ago period.

A surge in domestic rubber prices weighed on tyre manufacturers' first-quarter earnings, analysts said.

Rivals CEAT CEAT.NS missed its quarterly profit estimate last month, while Goodyear India GDYR.BO reported a lower profit on Monday, pressured by weak auto demand.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth(%)
Profit growth(%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
MRF Ltd
MRF.NS
26.06
11.94
9.01
18.27
Sell
4
1.07
0.17
CEAT Ltd
CEAT.NS
15.97
7.11
13.16
36.31
Buy
17
0.80
0.96
JK Tyre & Industries Ltd
JKIN.NS
11.12
6.73
7.32
31.56
Buy
5
0.78
0.94
Apollo Tyres Ltd
APLO.NS
14.76
7.25
6.87
28.27
Buy
23
0.88
1.14

* The mean of analysts' ratings standardised to a scale of "Strong Buy", "Buy", "Hold", "Sell", and "Strong Sell".

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT.

APRIL-JUNE STOCK PERFORMANCE

- All data from LSEG

-- $1 = 87.6160 Indian rupees

MRF, peers Q1 stock performance https://tmsnrt.rs/4lfDq3b

 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Sherry Jacob-Phillips)

 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))